The Commission announced that on November 8, 2006, the United States District Court for the District of Colorado entered a Final Judgment against Defendant Kelsey L. Garman, based on his consent. The remaining defendants were dismissed.

In its complaint, the Commission alleged that Garman falsely claimed to have had spectacular success trading securities on behalf of the four other defendants, Koinonia 100/200, Koinonia Investment Club, II, Koinonia Kingdom Club and Koinonia Income Account, when in fact the funds as a whole had losses rather than the gains he touted. Garman was charged with violating the antifraud provisions of the federal securities laws, the securities registration provisions and the antifraud provisions of the Investment Advisers Act.

Garman, without admitting or denying the allegations of the complaint, consented to an order of permanent injunction which permanently restrained and enjoined him from violating, directly or indirectly, Sections 5 and 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b), of the Securities Exchange Act of 1934 ("Exchange Act"), Rule 10b-5 thereunder and Sections 206(1) and (206(2) of the Investment Advisers Act of 1940. The Court also ordered that Garman is liable for disgorgement of $457,000, together with prejudgment interest thereon in the amount of $233,945 for a total of $690,945. However, the Court determined not to impose a civil penalty and to waive payment of all but $45,000 of the disgorgement and pre-judgment interest based on Garman's sworn statement of financial condition.